Similar to this member's problem: http://forum.jetbrains.com/thread/YouTrack-575
I'm having a connection issue on a local copy of YouTrack.
Only when I test the address in question using Outlook, it works when selecting the "Outgoing server requires authentication" checkbox. So it's something within YouTrack.
Does YouTrack use outgoing authentication by default?
Current YouTrack settings using GoDaddy's email server: